OTC Reporting Rules Commence in Europe
Market participants will now be obligated to report a higher degree of data to trade repositories than ever before, including valuations and collateral agreements. Central clearing counterparties (CCPs) will be required to report cleared contracts, as well as assume the identification of a counterparty in trades where either side do not know who they are transacting with.
Reporting has taken center stage in derivatives reform, as regulators are demanding a clearer picture of the approximately $639 trillion market. A large part of the financial crisis was due to the failure of institutions involved in OTC derivatives trades, and various global mandates are pushing reform such as reporting, central clearing and executing on electronic platforms rather than bilateral, invisible processes.
The EU regulation can be found here.
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